The collapse of a WA builder could leave many homeowners out of pocket as they will only be able to claim up to $100,000 in losses to have their half-built homes finished by an alternative builder.
The Burswood-based Builton Group, and its subsidiaries Platinum Homes, Aspireon Homes, and Multi Living by Design have gone into external administration, with debts to banks and some 350 unsecured creditors amounting to at least $30 million,
WA News reported.
Dino Travaglini of the company’s appointed administrator Cor Cordis advised homeowners to contact their offices or the group’s insurer
QBE to find out whether or not they can lodge a claim.
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“Building and construction is probably best described as being suspended at the moment, although I think it’s fair to say the continuation of any trade and building will be difficult, but nonetheless it is one of the options that we are looking at,” he said.
“There are approximately 110 to 130 homes which are still to be built by BuiltonCorp, we are looking at what can be done to complete those homes, and, probably more importantly, looking to see how those homeowners can be best protected.
“We’ll be taking steps to try and secure an alternate builder for the homeowners and will be working with the homeowners and those that have insurance will be working with QBE.”
Under QBE’s domestic construction insurance policy, homeowners could claim up to $20,000 in losses if no works have commenced; and up to $100,000 where works have commenced.
The compulsory insurance is triggered once a building company becomes insolvent, and aims to cover any losses and damages resulting from incomplete work.
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